WASHINGTON - The Federal Reserve Board is investigating whether banks are illegally "tying" their loans to underwriting assignments, according to Chairman Alan Greenspan.

In an Oct. 2 letter to Rep. John Dingell, D-Mich., and Rep. Edward Markey, D-Mass., Greenspan said his staff has requested information from a number of underwriting units of bank holding companies to see whether they are complying with federal laws that bar banks from illegally linking services.

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